Generosity + 5 things every small business should do

If you follow me on LinkedIn you'll know I love a friendly reminder delivered directly, so before you read on for the 5 things every business owner should do (in a specific order), here's one which is extremely apt for sharing here.

A friendly reminder for small business owners:

You will NOT lose business by sharing all your wonderful expertise “for free”.

It can be easy to fall into the trap of thinking your knowledge and ideas being on social media (or anywhere else for that matter) precludes you from making money.

Here’s why it’s not true:

• People who won't buy from you were never going to in the first place.
• Those who want to do it themselves already have.
• Those who can but choose not to might hire you.
• People who can't afford you now might be able to in the future.
• Ideas are plentiful, execution is crucial, and maintaining consistent execution is challenging.
• Karma.
• Control. I’ve written about this heaps recently, including in my last newsletter. Those who desperately try to control often lose their grip on the very thing.
• We are surrounded by abundance.
• If you're truly that good….dude, it’ll come to you anyway.

The moral of the story?

Be generous with your knowledge.

5 things every business owner should do

I read somewhere ages ago every business should make enough profit to do these five things, ideally in this order.

At the time I was three years into running a company as a young 20-something and I remember being stoked I'd ended up following this list, although skimping on point 4 at the time.

Since then I've actively kept to these principles and encourage my clients to do the same.

1. Create a sufficient cash buffer to survive a recession.

Given the "R word" has been rolling off our lips the past year or two, I probably don't need to explain the importance of this. Just as we're told to have an emergency fund for X months our personal living expenses, the same applies to building your business bank balance. Being able to keep on keeping on when times are tough eliminates 90% of the stress.

2. Invest enough in innovation to become an industry leader

They say aim high and you'll land among the stars, and this rings true for point 2. One thing industry leaders have in common is their commitment to reinvesting profits back into the business. It may not necessarily be to innovate in a radical way, but you'd be surprised at what little a lot of your competitors are doing and therefore how little it takes to elevate your business above them.

3. Generously reward your employees

You can look at this one-dimensionally and consider how generous remuneration can help employee retention (trust me when I say that's only one ingredient) but consider the way rewarding your employees supports them as individuals, their lives outside work and that of their family, and the community overall. We want happy, fulfilled people out there doing their thing. Remember the perception of reward extends beyond the dollars that land in someone's account, too.

4. Give back to the community of which you’re a part

It's a lovely to think about giving back to the community as priority 1 or 2, but if you lock it in down here at number 4, you'll be in a much better position to do so and to do so sustainably. You can involve your team, you can give your time, product or services, or you can give financially. There are many ways to give back; choose what works for you (but put your own oxygen mask on first).

5. Generously reward yourself/shareholders

I've seen the ramifications of hefty shareholder remuneration in recent years catch up on a few organisations, which builds a case for the first priority listed here. Don't pay yourself $500K until you can honestly say you've got points 1 through 4 nailed. It's the icing on the cake and the payoff for being the one to "risk it all" by being in business, and I've never seen a cake recipe that starts with slathering on the icing.

Ultimately you get to choose the order in which you do things, and I'm all for putting more emphasis on points 4 and 5 when the time is right.

Have you got your priorities straight?